Court upholds MTA payroll mobility tax

New York State's Court of Appeals on Tuesday, Jan. 14, 2014, upheld the payroll mobility tax used to help fund the Metropolitan Transportation Authority (MTA), denying a repeal of the tax sought mostly by Long Island political officials.

The challenge to the tax, levying 4 cents on every $100 of payroll, previously was upheld by a Long Island Supreme Court justice but overturned last June by the state's Appellate Division.

Nassau County Executive Edward Mangano last year stated, "We maintain the tax is overburdensome and just plain unfair." Mangano Tuesday said the Court of Appeals decision, while disappointing, still represented a victory for his constituents, since the challenge to the tax has prompted changes in its structuring.

MTA has held throughout that "removal of the tax's revenues would have had a catastrophic impact" on the region's economy and transit operations, including the Long Island Rail Road, Metro-North Railroad, and New York City Transit.